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Saugatuck City Council directs staff to draft short-term rental cap for R-1 districts after split vote
Summary
After heated public comment and a split council, the Saugatuck City Council voted 4–2 to direct staff to prepare ordinance language and related policies to cap short-term rental licenses in R‑1 residential districts at about 20% of dwelling units, with existing licenses protected from retroactive application.
The Saugatuck City Council on July 8 directed city staff to prepare ordinance amendments, resolution language and policy to implement caps on short-term rental (STR) licenses in the city's R‑1 residential districts.
The motion, made by Mayor Pro‑Tem Baldwin and seconded by Councilmember Anderson, passed on a 4–2 roll call vote. Councilmembers Anderson, Baldwin, Dean and Mayor Stanton voted yes; Councilmembers Gardner and Muncey voted no. Councilmember White recused himself from the discussion because he is in the process of applying for a short‑term rental license.
Under the direction approved by the council, the cap will be set by resolution at approximately 20% of dwelling units in each R‑1 district. The council specified that the cap will not operate retroactively: existing STR licenses will remain valid unless the property is transferred, the license is revoked, or the license lapses. The council also exempted a commercial property at 560 Campbell in the Peninsula West district from the cap and directed that new licenses, once available, be issued through a lottery system. The Planning Commission will hold a public hearing on the zoning amendment needed to implement the cap but will not assist with drafting the STR police‑powers ordinance.
The decision followed extensive public comment on the agenda. Dozens of residents and non‑residents spoke with mixed views: several people voiced support for capping STRs as a way to protect year‑round housing and neighborhood character, while many others urged the council not to limit STR licenses or asked for more outreach and data before restricting licenses. Coastal Alliance chair Bobbie Gaunt told the council she supports the airport property and also spoke in favor of STR caps; other speakers, including Greg Auer and Severyn Nowicki, said the council had not adequately considered their STR data or concerns.
During council deliberations, Councilmember Gardner disclosed past personal use of short‑term rentals, saying the option helped his family cover mortgage costs and had not been a “money‑making venture.” Attorney Jake Witte reviewed the City Charter definition of conflict of interest and explained that an indirect financial impact does not necessarily create a disqualifying conflict under Michigan law; that explanation framed the council’s discussion of recusal and who could vote.
Councilmembers who voted for the directive emphasized a desire to preserve housing options and to move a local policy forward after Planning Commission recommendations; those opposed said the council should reject the Planning Commission recommendation or sought different approaches. A prior motion to reject the Planning Commission recommendation, made by Councilmember Gardner and seconded by Councilmember Muncey, failed 4–2.
What happens next: staff will draft the ordinance language and resolution consistent with the council’s directions and will return proposals for future council consideration. The Planning Commission is scheduled to hold a public hearing on the required zoning amendment once draft language is available.
The council meeting record does not specify an implementation timeline or an exact residency/dwelling count used to compute the 20% figure; the council directed that the cap amount be set by resolution once staff and council have the necessary dwelling counts and related data.
